Meanwhile, Global Polyester Fiber Market is Segmented By Form (Solid, Hollow), By Grade (Polyethylene terephthalate (PET) Polyester, PCDT Polyester), By Product Type (Polyester Filament Yarn (PFY), Polyester Staple Fiber (PSF)), By Application (Automotive, Home Furnishing, Textile, Filtration, Construction, Others), according to a latest report from Valuates. The report stated that world Polyester Fiber Market was valued at USD 81.1 Billion in 2022, and is estimated to reach USD 160.1 Billion by 2032, growing at a CAGR of 7.1% from 2023 to 2032.

Polyester is in high demand in the textile sector because of its remarkable durability and affordability, which acts as a significant development engine. Concurrently, the building and automotive industries make substantial contributions to the growth of the market by using polyester fibers in a variety of components because of their robustness and adaptability. Technological developments, especially in the field of polymer science, enable continuous innovation and improve the sustainability and adaptability of fibers.

Additionally, the market is growing because of the worldwide trend towards sustainable practices, which favors polyester fibers manufactured using eco-friendly processes among environmentally concerned customers and enterprises. The market dynamics are further propelled by polyester's cost-effectiveness, affordability when compared to natural fibers, and growing appeal in non-textile applications.

Crude oil prices in focus

Synthetic Yarn prices are closely linked to crude oil prices. According to a latest update from the US Energy Information Administration or EIA, the Brent crude oil spot price increased in January, averaging $80 per barrel (b) because of heightened uncertainty about global oil shipments as attacks to vessels in the Red Sea intensified. Although it expects crude oil prices will rise into the mid-$80/b range in the coming months, we expect downward price pressures will emerge in 2Q24 as global oil inventories generally increase through the rest of our forecast. However, ongoing risks of supply disruptions in the Middle East create the potential for crude oil prices to be higher than forecast, says EIA.

EIA estimates that U.S. crude oil production reached an all-time high in December of more than 13.3 million barrels per day (b/d). However, crude oil production fell to 12.6 million b/d in January because of shut-ins related to cold weather. We forecast production will return to almost 13.3 million b/d in February but then decrease slightly through the middle of 2024 and will not exceed the December 2023 record until February 2025.

Outlook:

Sustained drop in synthetic yarn prices is a dominating feature of the manmade fibers market currently. However, given the cautious undertone in global geopolitical scenario and upbeat equities, there is a possibility of a spurt in crude oil prices globally. This can alter the dynamics for local synthetic yarn prices too. With the Interim Union Budget not offering any change in the basic customs duty on Manmade Fibers Yarn, currently placed at 5%, there is a possibility of continued flow of cheaper imports in the country. The industry demands to raise it to 10%.